The Ivy is facing a legal battle with a former waiter who claims the upmarket restaurant chain unfairly allocated him a share of tips and service charges – and refused to explain how his portion was calculated – despite a new law requiring fair and transparent distribution.
One Waiter, One Stir: A Tale of Tips and Turf Wars
In a twist that feels straight out of a reality‑TV drama, a former part‑time waiter at a luxe London hotspot walked away in June, but left more than just a flicker in the kitchen. He’s filing a constructive dismissal claim, arguing that the way tips and service charges were split at his branch was downright unfair.
Why the Grub‑Guide Got Grumpy
- March 2023: 43 hours of hard work yielded an initial tip haul of just £46.34.
- Shortly after, that figure was bumped up to £97.45.
- He estimates his hours made up roughly 2% of the total staff time that month, yet he pocketed less than 1% of the monthly tip pool.
From the waiter’s point of view, the fractions don’t add up. From the restaurant’s perspective, the numbers are “inaccurate and misleading,” they say.
The Ivy’s “Transparent” Playbook
The Ivy, owned by Richard Caring’s Troia (UK) Restaurants, insists on a “tronc” system to hand out the tip money. Here’s the gist:
- All £31,562 per month of tips & service charges is split by “tronc points.”
- Staff get a certain number of points that supposedly determines their slice of the pie.
- Those points are never disclosed – no one knows how they’re decided or how they stack up against the kitchen crew or management.
The company says revealing each person’s tronc score could violate employee privacy. The waiter says he never got a clear answer to his repeated questions in late 2023.
Legal Bullring 2023-2026
The Employment (Allocation of Tips) Act 2023 mandates that 100% of service charges must be handed out fairly and transparently. Employees should know exactly how tips are split.
Our legal eagle, Michael Newman from Leigh Day, told the press that this case could become a test case for the new law:
“This law is meant to make tip distribution fair. Either the company sidestepped it, or the law doesn’t work the way we intended. The tribunal could shine a light on how much detail employers are required to give out,” he said.
The Final Word… For Now
In April, the waiter had a performance warning that he disputes, filed a formal request for tip details, and then resigned two months later. If the tribunal sides with him, it could redefine tip splitting across the hospitality industry, forcing a culture of full transparency.
Stay tuned – the drama is just heating up.